If banks do not loan out all their excess reserves, then the real world multiplier is
A) not related to 1/RR. B) larger than 1/RR.
C) smaller than 1/RR. D) equal to 1/RR.
C
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In the early 1930s, the currency-deposit ratio rose, as did the level of excess reserves. Money supply analysis predicts that, everything else held constant, the money supply should have
A) risen. B) fallen. C) remain unchanged. D) either risen, fallen, or remain unchanged.
Farming in poor countries is considered to be:
A. capital intensive. B. labor intensive. C. production intensive. D. cost intensive.
Negative externalities occur when one person's actions
a. cause another person to lose money in a stock market transaction. b. cause his or her employer to lose business. c. reveal his or her preference for foreign-produced goods. d. adversely affect the well-being of a bystander who is not a party to the action.
An example of a public policy response to a monopoly is:
A. doing nothing. B. public ownership. C. antitrust laws. D. All of these are examples.